Long-Run Full-Employment Equilibrium Assumes

question 22

Multiple Choice

Long-run full-employment equilibrium assumes:

• A) ​a downward-sloping production function.
• B) ​a downward-sloping long-run supply curve (LRAS).
• C) ​the CPI index price level equals the equilibrium wage rate.
• D) ​the CPI equals aggregate demand (AD) equals short-run aggregate supply (SRAS) equals long-run aggregate supply (LRAS).
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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.